This was just posted by Blizzard:
We expect to implement the new patch for the World of Warcraft beta in the very near future. We don’t have an exact date yet, but we wanted to pass along an important piece of info to help everyone be prepared. The patch will modify the levels of several items, so if your character has an item equipped and no longer meets the requirements for that item, the item will be removed. If your character has bag slots open, then each item removed will go into an available bag slot. However, if your character does not have bag slots open, the item will be sucked into the Emerald Dream, where it will wait for you until you clear enough bag space to hold the items. Once that’s done, you’ll be able to log out and then log back in to have the items appear in your bags. Please help spread the word."